Gogo Inc. is a leading provider of broadband connectivity services for business and military/government aviation markets. The company recently reported its financial results for the first quarter of 2025, showcasing a significant rise in revenue and profits, largely driven by the acquisition of Satcom Direct.

In Q1 2025, Gogo’s total revenue was $230.3 million, reflecting a 121% increase compared to Q1 2024 and a 67% increase sequentially from Q4 2024. Service revenue reached $198.6 million, up 143% year-over-year and also 67% from the previous quarter. Revenue from equipment sales was $31.7 million, marking a 40% increase year-over-year and a sequential rise of 67%. The company’s adjusted EBITDA for the quarter stood at $62.1 million, a 43% increase compared to the same period last year, and an 83% increase from the previous quarter.

Gogo’s net income for Q1 2025 was $12 million, translating to a diluted EPS of $0.09. This represents a decrease from a net income of $30.5 million in Q1 2024. Adjusted EBITDA margins improved to 27%, exceeding the company’s mid-20% long-term targets, and service margins were approximately 53%. The company’s cash flow from operations was $32.5 million in Q1 2025, an increase from $29.7 million year-over-year and a turnaround from the cash used in operations ($38.3 million) in Q4 2024.

At the end of Q1 2025, Gogo had a total of 6,902 air-to-ground (ATG) aircraft online, which is approximately a 3% decline year-over-year and a 2% decrease from Q4 2024. However, the penetration of Gogo’s AVANCE platform rose to 68% of the ATG fleet, up from 58% the previous year. The number of broadband GEO aircraft increased by 16% year-over-year, totaling 1,280 units.

In terms of guidance, Gogo has reiterated its financial outlook for the year, projecting total revenue in the range of $870 million to $910 million, with adjusted EBITDA between $200 million and $220 million. The company expects to generate free cash flow of $60 million to $90 million in 2025.

The company’s strategic initiatives include substantial progress on new products, particularly the Galileo HDX and FDX antennas, with recent PMA approvals accelerating growth in service revenue. Gogo continues to realize synergies from the Satcom Direct acquisition, with $18 million of run-rate synergies achieved at the close of the deal, adding another $9 million during Q1.

As of March 31, 2025, Gogo’s cash and cash equivalents totaled $70.3 million, an increase from $41.8 million at the end of Q4 2024. The company reported a net leverage ratio of 3.4x, expected to remain stable in the coming quarters as it leverages operational improvements to bolster free cash flow.